Capital Equipment News May 2017

For informed decision-making MAY 2017

CAT 966L MEDIUM WHEEL LOADER RAISES THE BAR

AGRICULTURE: Gearing for a deal-centric NAMPO TELEMATICS: Evolution of telematics BUSINESS: Reinforcing sub-Saharan washing agenda

BUSINESS: POWERING A NEW ENGINE STRATEGY PAGE 26

CAT 966L MEDIUM WHEEL LOADER RAISES THE BAR

MINING 32 Gravico's strategy for new economy 33 SEW-EURODRIVE SA's MC Series IG units COVER 6 Cat 966L medium wheel loader raises the bar AGRICULTURE: PRE-NAMPO 8 Gearing for a deal-centric NAMPO TELEMATICS 14 Evolution of telamatics BUSINESS 20 Reinforcing sub-Saharan washing agenda BUSINESS - USED EQUIPMENT 23 Highlighting used equipment opportunities BUSINESS 26 Powering a new engine strategy PROFILE 28 Relishing higher-than-average growth rates COMPACTION 30 HAMM's oscilation compaction prowess CONTENTS Capital Equipment News is published monthly by Crown Publications cc Editor: Munesu Shoko capnews@crown.co.za Advertising manager: Claudia Bertschy claudiab@crown.co.za Design: Anoonashe Shumba Publisher: Karen Grant Deputy publisher: Wilhelm du Plessis Circulation: Karen Smith PO Box 140 Bedfordview 2008 Tel: (011) 622-4770 Fax: (011) 615-6108 www.crown.co.za Printed by Tandym Print The views expressed in this publication are not necessarily those of the editor or the publisher. Total circulation Q1 2017: 3 662 FEATURES REGULARS for Kazakhstan gold mine MATERIALS HANDLING 34 Goscor-Weir Minerals partnership thrives 34 Konecranes and Terex MHPS join forces CONSTRUCTION 36 The value of aftermarket support 37 New EMEA boss for Doosan Bobcat TRANSPORT & LOGISTICS 38 FAW SA's global recognition 38 Q1growth for truck industry despite economic turbulence AGRICULTURE 39 CASE's line-up at NAMPO 40 Brazilian OEMs seek distributors at NAMPO 2017

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CAPITAL EQUIPMENT NEWS MAY 2017 3

EDITOR'S COMMENT

CHANGING DYNAMICS

I n recent years I have had the privilege to attend several international exhibitions and OEM-related events. It is mind-gobbling to observe the rate at which we are moving from one trend to the other as far as both the yellow metal equipment and commercial vehicles industries are concerned. Not that long ago the simplicity 'gospel' was the buzzword of the yellow metal equipment industry, but sophistication seems to be upstaging that principle. Simplicity means the need for a basic piece of equipment that comes with no extra 'bells and whistles' that often push the price of the particular unit higher. Just back in 2015, the need for simplified machines took centre stage, with value brands reaping more market share gains as the sheer need for this range of equipment intensified. Even some of the premium OEMs weighed in with several new launches of down-specified machines that lost most of the flamboyant features. Understandably, in a struggling market, price is always king in buying decisions. To drive this point home, I vividly recall my attendance of Atlas Copco’s local launch of its PowerROC T50, a top hammer drill rig, which had 'simple' written all over it. At the launch, officials spoke of Africa’s need for a simple tool that just gets the job done with no form of sophistication. Based on this approach, the PowerROC T50 rolled off the production line to meet the requirements of a market that grappled with low skills levels and financial pressures on both mines and quarries, as well as their related contractors. But, a year down the line, in 2016, there was another school of thought that simplicity may not necessarily be the answer for operations reeling under the current economic burden. In fact, the opposite is true; sophistication is what these operations need. Last year, Atlas Copco’s launch of the new SmartROC D65 heralded a new thinking altogether, with the OEM saying when times are this tough and operations are under pressure to improve productivity and lower their operating costs, automated equipment solutions may be the answer. On the back of these changing business dynamics, Atlas Copco’s SmartROC D65,

a highly automated drill rig that drills holes on its own, was launched to address the issue of costs two-way. It has a range of intelligent features that allow it to drill production blast, pre- split and buffer holes, as well as in-pit grade control with reverse circulation. A single operator can also operate three drill rigs at any given point, while 10 rigs can be pre-programmed in the separate BenchREMOTE operator station with the help of the Hole Navigation System. While Atlas Copco was, just a year before, a firm believer in the simple tool, today it believes the timing for high-tech offerings to shrink costs on African sites is now. Forget the low skills outcry, as one of the officials reasoned that 'high-tech doesn’t always translate into operational sophistication'. He went on to argue that if “99% of the local population could operate a smartphone, they could as well steer this rig because it tells you what you need to do at any given point. There is no reason to fear technology anymore”. As you will see in the Telematics feature in this edition of Capital Equipment News , while the adoption of this technology has been slow in coming in the past few years, especially in the local construction equipment industry, there are strong prospects of the rapid evolution of digitisation as companies realise that digital transformation is critical to survival in the new world order. Both suppliers and researchers have seen a wave of new interest in telematics, with commercial vehicles leading the uptake, and the sense of urgency is possibly proof that the industry has realised that those businesses that are not digitising will start to fail. Against this backdrop of unrelenting change, the only way to survive is to embrace a culture of innovation. Rather than encouraging teams to ‘stick to the basics’, organisations should be ready to experiment, to fail fast, and to recover quickly from failure. As futurist Graeme Codrington put it in a recent Sage podcast: “The single most important thing you can do to be responsive to change is to experiment – leaders need to create a mindset and a structure that makes constant experimentation possible.”

Munesu Shoko – Editor

capnews@crown.co.za

@CapEquipNews

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DISA Equipment (Pty) Ltd T/A Doosan SA Johannesburg : Tel: +27 11 974 2095 | Fax: +27 11 974 2778 | 60c Electron Avenue, Isando, Kempton Park Durban : Tel: +27 31 700 1612 | Fax: +27 31 700 1646 | 4B Stockville, Mahogany Ridge, Pinetown Wolmaransstad : Tel: +27 18 596 3024 | Fax: +27 18 596 1015 | 72 Kruger Street, Wolmaransstad E-mail : chantalh@doosan.co.za Visit our website to find a dealer near you – www.everdigm.co.za

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COVER STORY

CAT 966L MEDIUM WHEEL LOADER RAISES THE BAR

Jabula Plant Hire’s new Cat 966L moves stockpiled material to feed a bin above a conveyer belt system at Marikana.

The new Cat ® L Series medium wheel loaders, including the 966L and 950L models, have hit our shores. Southern African Cat dealer, Barloworld Equipment, believes improved performance, fuel economy and operator-related features raise the bar higher on the highly-respected 966H series.

T he first 966L units arrived in South Africa in March 2017, following Caterpillar’s official launch in 2016. Nico Geldenhuys, Caterpillar Certified Sales Professional – Mining, at Barloworld Equipment Middelburg, delivered the first four units in the country to Jabula Plant Hire in April 2017. “I am excited about the future of the new Cat 966L,” says Geldenhuys. “It has big shoes to fill as successor to the previous model Cat 966H, which has become known as a bulletproof machine in the field. Caterpillar’s 966 medium wheel loaders have earned a reputation for maintaining a low cost per tonne over the life of the machine. But I am sure that the 966L will become a legend in its own right. It sells at a good price and offers more than the 966H.”

from Barloworld Equipment for four 966Ls marked the start of a replacement programme for this fleet. The new machines are working at Lonmin’s Marikana site near Brits in the North West Province, loading side tipper road trucks and trains, stockpiling and feeding the shoots to conveyor systems. Johan Lotter, Group Mechanical Manager at Jabula Pant Hire, says the investment in the new fleet was made to keep pace with technology that incorporates improved safety measures. “We have always used Cat wheel loaders and find them to be tough and reliable machines,” he says. “We are achieving the same performance as the 966H with the new 966L model, with lower fuel consumption and a more comfortable experience for our operators.

Geldenhuys says the 966L has the versatility to suit all his customers needs, from large mining houses and contract miners to construction contractors. “Our customers will be very happy with several new features, most importantly the 10% plus better fuel consumption, improved visibility from the cab, improved serviceability around the engine and articulation of the loader, the rear view camera that is now standard and the Cat payload monitoring system.” Feedback so far has been very positive, he adds. “Customers love this machine and so do operators. It provides a very comfortable ride and is easy to operate.” Jabula Plant Hire Jabula Plant Hire owns a large fleet of Cat 966H wheel loaders and the order

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From left: Johan Erasmus, site manager at Jabula Plant Hire; Nico Geldenhuys, Caterpillar Certified Sales Professional at Barloworld Equipment Middelburg; and Johan Lotter, group mechanical manager at Jabula Plant Hire.

“For me the most important technology improvements in the 966L are the rear view camera to provide clear vision and the Caterpillar payload monitoring system,” says Lotter. Jabula is using smaller buckets than the standard Performance Series buckets offered with the 966L due to the heavy and abrasive material being handled. Geldenhuys points out that various different size buckets can be used to suit different applications, with the Performance Series redesigned to improve material retention and decrease cycle times. Jabula also has Cat medium wheel loaders on other mine sites, including 966H models on coal mines in Mpumalanga fitted with 6 m³ coal buckets. Customer support Barloworld Equipment Middelburg provides after sales service support for Jabula’s Cat fleet and Lotter says reliable parts supply is a big plus in this long-term relationship. “The product support we offer our customers is of utmost importance,” Geldenhuys explains. “Our customers can’t afford to have machines standing for long. Our specialised field artisans are available 24/7 and we have customer service representatives who go to sites and do machine or fleet inspections that help with preventative maintenance. “Our product and application specialists, for example, Vusi Mahlangu on wheel loaders, undertake site severity studies to advise customers on the right equipment for their applications and monitor the machines following delivery to ensure that production targets are met.” The Cat 966L offers various technology options to help owners and operators maintain high productivity effortlessly. “You can monitor your operations and manage tonnes moved through Cat Payload Monitoring, a feature of Cat Connect

The Cat 966L comes with an improved cab with a new indicator and button layout designed to improve operator productivity and safety, new larger convex mirrors to improve visibility to the rear, as well as integrated spot mirrors to provide visibility close to both sides of the machine.

offering which is optimised for maximum fuel savings with minimal productivity impact.” Potelwa also recommends the use of add- on technologies such as the new optional automatic traction-control/differential locks that improve tractive ability in difficult underfoot conditions by measuring differences in axle speeds. The system is activated automatically without requiring operator intervention. She agrees that operators will love the world-class cab, with a new indicator and button layout designed to improve operator productivity and safety, new larger convex mirrors to improve visibility to the rear, as well as integrated spot mirrors to provide visibility close to both sides of the machine. “All the added features and benefits that come standard with the machine, together with the design improvements, put the 966L in a class of its own at a price that is still in line with competitive wheel loaders,” concludes Geldenhuys. b

Solutions that is integrated in the new touch screen display and weighs loads in real time to help operators achieve targets,” Geldenhuys explains. Cat Connect Solutions also provides access to machine operating data such as total fuel consumption, average fuel rate, total idle time and fuel consumed at idle and total operating hours. Power train Sivu Potelwa, GCI (Global Construction and Infrastructure) Product Manager at Barloworld Equipment, says the Cat C9.3 ACERT engine in the 966L provides more power, while improving fuel efficiency by up to 15%. “The 966L powertrain has been improved with the addition of lock-up clutch torque converters as standard equipment. The new torque converters have also been matched with the engine power and hydraulics to improve performance and fuel efficiency. Productive Economy Mode is a standard

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AGRICULTURE: PRE-NAMPO

GEARING FOR A DEAL-CENTRIC NAMPO

G rain SA’s NAMPO Harvest Day – a staple on the calendar of the South African agricultural community and those who serve it – enables producers and other role players in the agricultural industry to experience the latest products and solutions on offer first-hand and on one place. This year’s show, to be held from May 16 to 19 in Bothaville, Free State, comes at a time when the local agricultural community is experiencing seemingly better times compared with the dire drought conditions in 2016. Attracting close to 77 000 visitors and over 650 exhibitors every year, the show is said to be one of the biggest agricultural exhibitions in the southern hemisphere.

This year’s NAMPO Harvest Day comes amid seemingly improving prospects in the agricultural sector premised on easing drought conditions in South Africa. As a result, several exhibitors expect a deal-centric show as farmers look to bolster their fleets with new products and solutions to improve their farming processes, writes Munesu Shoko .

State of market Bell Equipment is one of the original equipment manufacturers exhibiting at this year’s show, and Tim Beningfield, product marketing manager – Forestry, Sugar and Agriculture, tells Capital Equipment News that recent drought conditions have had serious effects on the agricultural community at large, but there are some

positive signs of relief in certain areas. “We remain optimistic that the recovery will gain momentum in the near future,” says Beningfield. “We see a positive outlook of the sector at large as the drought seems to have abated, particularly in the coastal sugarcane growing regions.” Ryno Saayman, marketing coordinator at Hydraform International, an alternative

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Smith Power Equipment will be showcasing its range of agricultural solutions at this year’s NAMPO Harvest Day.

building technology company which supplies its solutions to the farming community, is also optimistic that this year’s show comes at a time when the agricultural sector is rebounding, especially on the back of some good rains earlier this year, which he believes will result in better yields this year. However, he cautions that some of the farmers are not out of the woods yet, with some regions, such as the Western Cape, still experiencing severe drought conditions, while there has been

an outbreak of the Fall Armyworm in some parts of the country as well. Nazlie Dickson, marketing and sales director at Hydraform, says while the agricultural sector remains vital to the economy and the food security of South Africa at large, it remains a fragile sector that is dependent upon unpredictable variables such as weather, pestilence and the instability of the labour market. “The local agricultural sector has faced several obstacles of late, due to the drought and

more recently, the outbreak of the Fall Armyworm in Limpopo and North West Province,” she says. “Although there is an estimated 80% growth in maize production compared with last year, many farmers may still struggle, especially with maize prices expected to be much lower this year.” Robert Keir, marketing manager at Smith Power Equipment (SPE), a South African importer and distributor of leading global specialist machinery, turf maintenance equipment and off-road vehicles, says while the agricultural market has seen trying times over the past two years, there is room for optimism. “We are very positive about what 2017 has and will bring and are already observing some positive trends in the market; the Rand is showing signs of strength and customers are spending more

“Even though we see disparate weather patterns and rainfall in different provinces, with the Western Cape still navigating a bad drought, it is encouraging that we have had good rains in the northern regions and that the crops are yielding.”

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AGRICULTURE: PRE-NAMPO

Bell has been testing the F-series for three years and has eight test units currently working in most forestry and cane regions across the country.

“NAMPO brings the whole agricultural industry, including importers, dealers and customers to one place, offering an array of products and insights for the farmer to make the best informed investments for their operations.”

year, the F-Series Tri-Wheelers officially launching in early 2018 after three years of testing and development, as well as a series of products from our partners, including Bomag, John Deere and Matriarch,” says Beningfield. Matriarch is a South African company which was established by Bell founder’s grandchildren in 2009 and in the past five years it has developed products for the sugar and forestry sectors. Its products on show will include the ULTeco 5 and 6 slewing crane loaders; the Skogger, which is used to extract and load timber; and the FASTFELL, which is used to fell and bunch timber. Visitors to Bell Equipment’s stand at NAMPO will have the privilege to preview the local manufacturer’s F-Series Tri-Wheeler, which is due to be released for sale globally during the first quarter of 2018. “The Bell Tri-Wheeler is a founding product that has become legendary due to its proud history of over 50 years in the sugar and forestry industries. There is always a danger when re-designing a product that is so well accepted by the market, but we have been mindful during the design and testing processes to keep true to the original design intent, while adequately making advancements in the

Hydraform will be launching its new Hydraform M9 block making machine at NAMPO 2017.

strategically than before,” comments Keir. “Even though we see disparate weather patterns and rainfall in different provinces, with the Western Cape still navigating a bad drought, it is encouraging that we have had good rains in the northern regions and that the crops are yielding,” he says. That said, Keir says the agricultural market is still recovering and a challenge that comes with this is accessing finance. Keir asserts that creative fiscal offerings, such as “off balance sheet” funding, are important in a climate such as this. “This type of approach to asset finance comes with benefits to the farmer, such as not having to lay out any initial capital, which helps with essential cash flow. Furthermore, lease payments on the equipment are fully tax deductible and VAT is paid on a monthly basis,” notes Keir.

“We have identified agriculture as a key market for SPE, since every farmer needs the right tools to do their work effective- ly and mechanisation is vital to running a farm more efficiently from a financial perspective,” says Keir. “NAMPO brings the whole agricultural industry, including importers, dealers and customers to one place, offering an array of products and insights for the farmer to make the best in- formed investments for their operations.” Bell’s NAMPO line-up Bell Equipment’s exhibits at this year’s show, according to Beningfield, will showcase the company’s focus on providing solutions which offer best cost per tonne to the agricultural sector. “Our products planned for NAMPO include the Series IV Tractor launched last

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AGRICULTURE: PRE-NAMPO

Goscor will use NAMPO 2017 to showcase its new Bobcat telehandler designed for the farming community.

by up to 26%. “At this level operators are not required to wear PPE to protect against noise as levels are below the 85 decibel parameter stated by Occupational Health and Safety standards,” says Kramer. Building agricultural blocks Over the years, Hydraform has forged a long and successful relationship with the agricultural community, demonstrated by the exhibition of its brick and block making machinery at NAMPO for the 21 st consecutive year this year. “The products and innovations on display at NAMPO are always of world class standard,” says Dickson. “The show facilitates the demonstration of all the latest technologies available to the sector, not only to grow this market, but to play their part in facilitating constant improvement of the quality of produce. NAMPO is thus an ideal platform for suppliers and manufacturers to access invaluable direct market input from their customer base and vice versa.” Saayman tells Capital Equipment News that Hydraform’s alternative building solutions fit the bill for farmers, who are often located in remote areas where access to commercial brick and block suppliers for the purposes of building farm infrastructure, is often difficult. “Most farmers are based in rural and remote areas and our systems are a perfect fit for such conditions where they need to manufacture blocks on site for construction purposes,” says Saayman. On the product front, Hydraform will be launching its new Hydraform M9 block making machine at NAMPO, which will be making its public debut at the show. It is an entry-level block making machine aimed at small projects and has the agricultural sector in mind. It can produce 500 interlocking blocks per day, which equates to 13 m² of building a day. “It’s aimed at farmers in general, as well as small contractors that can build on farms,” says Saayman. “It is a small business unit based on a trailer and comes with the various items one would require for block manufacturing, including a generator and a large water tank, all fitted on a trailer.” The equipment can be dismounted from the trailer, allowing the trailer to be used separately for transporting of blocks or material.

BMG will use this year’s NAMPO to showcase its extensive range of agricultural components.

critical areas of safety, ergonomics and reliability, which combine to improve productivity,” says Beningfield. Bell has been testing the F-series for three years and has eight test units currently working in most forestry and cane regions across the country. These will have notched up in excess of 10 000 hours of accumulative testing by the launch date. According to Beningfield, apart from addressing customer requirements, the F-series will enable Bell to rationalise the number of models it manufacturers by introducing a modular approach. “We will bring to the market a base F-series machine that is equivalent to the current offering in terms of both specifications and pricing. However, customers will then be able to choose from a range of ‘bolt on, bolt off’ packages to tailor their machine to their specific needs,” he says. “In this way they

only pay for the technology and features that they require for their operating environment.” Ian Kramer, Bell Equipment’s chief engineer: Agriculture and Alliance Products, explains that moving to a water-cooled engine has substantially impacted on reducing noise levels. Bell has opted for the Japanese-manufactured Yanmar engines, which are highly regarded in the marine, construction and agricultural industries. “The F-series will be available with two different engines. The first matches our current Tri-Wheeler offering by delivering 45 kW at 2 200 rpm, while the second provides customers with an option of a high-powered machine with a turbo-charged engine that delivers about 25% more power,” says Kramer. Noise reduction has also been incorporated into the design and the F-series, with full specifications, is able to reduce noise levels

“The products and innovations on display at NAMPO are always of world class standard.”

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Goscor’s strong showing The Goscor Group will also be showing a range of its products from its various companies, including Goscor Power Products, Bobcat and Sany, Goscor Cleaning Equipment and Goscor Access Rental. With an extensive range of firefighting equipment, water pumps and sprayers, Goscor Power Products is actively involved in the agricultural sector, as well as sup- plying cooperatives, says MD Mark Bester. Goscor Compressed Air Systems will showcase its portable and stationary compressors from the Ozen and Sullair stable. It will also highlight its capability to service and repair all makes of compressors, air tools and dryers, in addition to offering a compressed-air equipment rental service. A key highlight for Goscor Power Products will be the presence of the all-new Rato “We will also have our full range of water pumps on display, in addition to special products such as diesel- driven irrigation pumps for remote farming areas where electricity supply is constrained.”

engine brand, which can be incorporated into bakkie-mounted firefighting equipment as rapid-response units for the farming community. “We will also have our full range of water pumps on display, in addition to special products such as diesel-driven irrigation pumps for remote farming areas where electricity supply is constrained,” says Bester. Another new brand to be introduced to the Goscor Power Products’ stable at NAMPO 2017 will be WEIMA diesel engines for welding gensets. Goscor Cleaning Equipment will showcase its Maer range of Italian high-pressure cleaners. National sales manager Peter Esterhuizen says the main aim is to generate awareness of the high-quality brand among the farming community, in addition to the flagship Tennant range of outdoor environmental cleaning solutions. Esterhuizen adds that traditionally the agricultural sector has focused on cold- water pressure cleaners from 150 to 200 bar. “We want to highlight to visitors additional applications presented by our larger machines, including cleaning farming equipment such as combine harvesters and tractors for maintenance purposes.” Describing the event as a traditionally busy show, Esterhuizen says NAMPO is distinguished by the fact that actual sales

orders are generated on the stands, which translates into a tangible return on investment for exhibiting companies, in addition to brand awareness. To capitalise on this trend, Goscor Cleaning Equipment will offer special prices on two of its high- pressure cleaning machines. Goscor Access Rental will be represented by Tanya Brummer and Lavesh Gunpath, who concur that the event is not only well- known in the farming community, but has an exceptional customer footprint as well. Given the price-sensitivity of the agricultural sector, refurbished and cost-efficient Doosan forklifts will be on display to showcase the total cost of ownership benefits for customers. On the Bobcat and Sany side, a special focus will be the launch of a new compact backhoe loader and telehandler for the farming community, as well as a mini- excavator. The new compact backhoe loader has been developed in conjunction with Kukorova of Turkey, featuring a 74,5 kW Perkins engine. Additional products will include a double- drum ride-on roller and a small grader. These products are aimed particularly at farmers upgrading road infrastructure in rural and remote areas, which is a new growth area the equipment supplier wishes to tap into. b

TELEMATICS

EVOLUTION OF TELEMATICS When businesses report a 23% increase in the total number of jobs completed per day, per technician, just by using fleet telematics, there is no denying the impact this technology can have on overall productivity, and the bottom line. Commercial vehicle fleet operators in Africa have gone down the telematics route further than their construction equipment peers, but there are prospects of increased telematics uptake from both industries as features for driver behaviour, maintenance, productivity and utilisation are growing in demand, along with traditional safety and security capabilities, writes Munesu Shoko .

I n the developed world, telematics solutions have quickly become the gold standard as a cost effective way for fleet-driven businesses to help keep the lid on fuel and overall fleet costs. With a telematics system installed, businesses have the capability to know the location of their vehicles or pieces of equipment. This helps save fuel through dispatching efficiencies and improved routing, while data gathered by these systems – including driver speed and idle time – can further help businesses improve safety, productivity and operating costs. In the African operating environment, fleet owners are fast catching up on the potential gains telematics solutions can have on their businesses. Research shows that commercial vehicle fleet owners’ uptake of these technologies is at an ad- vanced stage than in the yellow metal equipment space, but indications are that this will likely change in the near future. From a manufacturer’s point of view, third-party makers of telematics solutions dominate the market, while original equip- ment manufacturers (OEMs) are starting to develop their own solutions or partnering with specialist telematics suppliers to tap

into this potentially lucrative market. According to Frost & Sullivan’s Analysis of the Commercial Vehicle Telematics Market Outlook in South Africa report, automotive production in South Africa has been steadily increasing in recent years, and the parallel focus on fuel efficiency and low cost of ownership is expected to bolster the adoption of telematics in South African commercial vehicles. “Post 2017, the enforcement of relevant regulations and the entry of vehicle OEMs through partnerships and acquisitions is expected to augment the deployment of telematics in commercial vehicles,” says Gokulnath Raghavan, Frost & Sullivan’s Automotive and Transportation research analyst. The commercial vehicle case Frost & Sullivan finds that the installed base of commercial vehicle telematics in South Africa stood at approximately 600 000 in 2014 and estimates this to reach around 840 000 by 2017. Features for driver behaviour, maintenance, productivity and utilisation will be in demand, along with traditional safety and security capabilities. Raghavan, however, notes that

aftermarket or third-party suppliers still dominate the overall commercial vehicle telematics market in South Africa, with OEMs only recently kicking off in- house telematics fitments. Peter Le Roux, Telematics Specialist at Volvo Trucks South Africa, shares the same view, adding that currently 87% of all telematics offerings are provided via third-parties. “OEMs only account for the other 13%,” he says. Volvo Trucks is one of the OEMs with its own telematics system called Dynafleet. Officially introduced in 2013, the company has just over 2 500 vehicles running on Dynafleet in the local market. Dynafleet offers users real time data in a user-friendly and easy-to-understand manner. Its three service offerings are Fuel & Environment, Positioning and Messaging. “On Fuel & Environment, the service offers detailed reports that make it easy to chart potential improvements and follow up – on driver, truck and fleet level,” says Le Roux. “There is a variety of reports that can be customised for specific needs. The overview report covers fuel consumption, idling, coasting and I-Shift use, as well as cruise control, among many other

CAPITAL EQUIPMENT NEWS MAY 2017 14

More and more OEMs in the construction equipment industry, such as Volvo CE, are now including telematics solutions as standard in their offerings.

aspects.” Deviations from a set target are monitored in the exception report. There is also a driver coaching tool available in the vehicle. “Driver coaching guides the driver to improved driving technique through real time Fuel Efficiency Score while driving,” says Le Roux. When it comes to positioning, the map view collects the information needed to plan the transport operation. Current vehicle location, speed, distance travelled, fuel saved and fuel level are at hand in the map view. “The positions of the vehicles are event- based with a new position approximately after every 5-10 minutes,” says Le Roux. Meanwhile, Messaging allows two-way communication between the vehicle and the Dynafleet portal. “Messages can be sent from Dynafleet to the trucks where the driver can respond to them using the Bluetooth QWERTY keyboard.” Key drivers According to Raghavan, the emergence of new business cases, such as pay-per- service, as well as higher awareness on mid-tier solutions, will unlock opportunities in the South African commercial vehicle

telematics space. “Major OEMs are looking to provide factory-installed telematics, especially in light commercial vehicles since more than 90% of this segment remains untapped,” says Raghavan. Meanwhile, Le Roux tells Capital Equipment News that the Light Commercial Vehicle (LCV) segment makes up a big chunk of the telematics pool, +/-50%. “We do, however, notice that their needs are much more for basic services. The Heavy Commercial Vehicle (HCV) and Extra Heavy Commercial Vehicle (EHCV) sectors are the driving forces behind more advanced information needs. We also notice that customers in the HCV and EHCV segments require different services for different applications,” says Le Roux, adding that thus the need for customisation and flexibility in packages offered is ever increasing. Load and combination values also play a part in the selection of services, according to Le Roux. “Customers carrying goods of high value tend to request more detailed services compared with customers doing basic distribution of low-value loads. We have seen a huge increase in the fuel

industry, for example, in the past few years.” Key concerns Despite the improvements made in telematics and the real-time data that it produces, a reluctance to adopt the technology still lingers among some local fleet managers. This is more so among construction equipment fleet owners than their commercial vehicle counterparts. Le Roux agrees, saying that when Volvo Trucks first introduced Dynafleet in 2013, there was some resistance from certain operators. He, however, notes that this has since changed as more and more commercial vehicle owners are enquiring about the service offering. The penetration of telematics in the local construction equipment space as a whole is slow in coming, but operators are gradually beginning to realise the bene- fits as more and more OEMs now include telematics solutions as standard in their offerings. The key concern in the yellow metal equipment industry has always been the fact that most construction fleets are mixed

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TELEMATICS

Peter Le Roux, Telematics Specialist at Volvo Trucks South Africa, says currently 87% of all telematics offerings are provided via third-parties.

fleets comprising vehicles from different OEMs and often include on-road vehicles, in addition to off-road vehicles. While many OEMs are hard at work to develop their own telematics solutions for their offerings, both in construction equipment and commercial vehicles, all these systems are different and mostly incompatible with each other. Consequently, standardisation remains a key concern holding back the adoption of telematics, especially in the construction equipment sector. According to Gareth Owen, principal analyst at ABI Research, as construction fleets adopt telematics, fleet operators are increasingly demanding more standardisa- tion, easier interfacing and a single-source site for all OEM API data. Le Roux adds that mixed fleets (different OEMs) pose a challenge as fleet owners prefer having a standard telematics supplier. This explains the domination of third-party suppliers in the telematics space, which Le Roux says is now overtraded, with over 200 suppliers in South Africa. However, Owen notes that some progress has already been made to address these concerns in recent years, with OEMs such as Caterpillar, Komatsu, Volvo Construction Equipment and John Deere, to mention a few, working with aftermarket suppliers

commoditisation and decreased costs of telematics, both in terms of hardware and connectivity, could help lead to billions of dollars’ worth of new efficiencies in operations and capital management. “Several factors, including a downturned economy and glut of used equipment that has at times slowed the purchasing of new machines, have meant the industry has been slow to adopt telematics and the so-called industrial internet-of-things. But there are signs that will soon dramatically change,” says Trevor Mecham, vice president of construction and agriculture at Uptake. Mecham says the recent push from OEMs and AEMPs to standardise hardware and information throughout the industry, combined with the decreasing cost of telematics and connectivity equipment, signals that the industry is on the cusp of generating what could amount to billions of dollars’ worth of increased uptime, better equipment utilisations and optimised workflow processes and operations. “In short, telematics will generate a deluge of data that most companies in the industry won’t be prepared to analyse, much less take actionable insights on. Equipping millions of pieces of construction equipment with sensors is the easy part – utilising the data they’ll produce is the real

such as Navman Wirelless and industry bodies to develop standard APIs for some of the basic data such as vehicle identification, location and hours of use. “Some operators, such as rental fleet companies, are also calling for standardisation of more data advanced feeds such as geo-fencing, immobilisation, safety devices and alerts, and no doubt this will follow,” says Owen. Partnerships abound To respond to the concerns mentioned above, Raghavan says joint ventures, mergers and acquisitions among OEMs and aftermarket telematics vendors are likely to gain momentum. Already, several key joint ventures have been announced in this regard. Recently, Caterpillar announced that together with its long-term partner, Trimble, have devel- oped a brand-new agnostic fleet manage- ment and site productivity solutions plat- form designed for contractors with mixed equipment fleets. To further address concerns around data interpretation, Caterpillar recently announced its partnership with Uptake to transform the construction industry through data analytics. The two companies are of the view that

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TELEMATICS

Glencore recently awarded a three-year contract extension to vehicle tracking and fleet management specialist Ctrack by Inseego. The agreement will see Glencore’s fleet of 600 vehicles upgraded to Ctrack’s advanced management solutions at its operations in Mpumalanga, South Africa.

The Leica iCON rig solution for drilling and piling machines will now be part of the process for data recording and reporting in Liebherr deep foundation machinery.

Photo supplied by Glencore

UD Trucks’ Quester range of commercial vehicles comes with telematics as standard.

dimension for our positioning solution for drilling and piling applications,” says Johan Arnberg, president of the Leica Geosystems Machine Control Division. “We are proud to bring added value for Liebherr customers and an easier and efficient way to manage their data on any drilling and piling construction projects.” The Leica iRD3/iRP3 solutions create a 30% time and cost saving with every drilling/piling job. The systems drastically reduce the need for stakeout work. Among other features, they also offer wireless update of project files and remote support via telematics. Users can document their work as the project progresses and avoid drilling in old and failed holes. “Exact positioning and precise execu- tion of drilling and piling processes are crucial for the success of deep foundation machinery,” says Holger Streitz, managing director, Liebherr-Werk Nenzing. “With the integration of components from Leica Geosystems in Liebherr’s LIPOS solution, drilling and piling processes are more transparent and traceable. Thus, quality assurance can be better controlled.” In conclusion, Mecham says, telematics, in the short term, it’s all about awareness. “Lots of companies in construction know that the power of data and telematics will enable them to work better, faster and longer, but right now, it’s ‘how’ will this happen and ‘when’ will there be an impact,” he says. “In the long term, it’s about transforming the industry. We know there are billions of dollars to be gained from harnessing the power of data. Over the next generation, this industry will see radical change.” b

obstacle,” says Mecham. Uptake, a Chicago-based data analytics company, wants to take on the data challenge. It’s working with the industry to both standardise its telematics ecosystem, and also to provide a platform to use all of that data to increase efficiencies across the board. But rather than developing a software platform as a third-party vendor to sell to the sector, it launched a joint venture project with Caterpillar to drive change from within the industry itself. “The construction industry has so much to gain from using data to optimise manufacturing, maintenance, logistics and operations – it’s certainly in the billions of dollars,” explains Mecham. “Rather than a one-size-fits-all solution, we are partnering with Caterpillar and other companies to build predictive analytics solutions that

solve challenges unique to the industry.” Meanwhile, Leica Geosystems, a lead- ing measurement technology company, recently announced that its Leica iCON rig solution has been integrated into LIPOS (Liebherr Positioning System) by Liebherr, one of the world’s largest manufacturers of construction machinery. The Leica iCON rig solution for drilling and piling machines will be directly implemented into LIPOS factory-mounted add-on kit, which includes a fixture for the easy and quick installation of hardware without the need to change the machine structure. The rig solution will now be part of the process for data recording and reporting in Liebherr deep foundation machinery. “Combining Liebherr on-board sensor information adds a significant extra

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BUSINESS

REINFORCING SUB-SAHARAN WASHING AGENDA

Leading wet processing equipment manufacturer CDE is reaping the rewards of stepping up its drive to engage directly with the African market by developing its local team, writes Munesu Shoko .

T here is a general strong sentiment that the medium and long-term growth of many international original equipment manufacturers (OEMs) will have to be garnered in Africa. The continent is regarded as the new frontier which presents a wealth of opportunities and there has to be plans for growth-seeking OEMs to create some sort of a footprint on the continent. Northern Ireland-based CDE, a leading provider of wet processing equipment for quarries, mines and recycling operations on the global market, is one of the OEMs with a well-defined strategy to make the most of the African market, and growing its footprint ranks highly among its key initiatives. With its range of equipment for applications dedicated to a wide range of materials across five sectors, including sand and aggregates, mining, specialist industrial sands, construction and demolition waste recycling, as well as environmental, CDE already has an extensive footprint across eight regions of the world and its business is based on collaborative, innovative

and unique wet processing systems. The company has strong bases in Kolkata, India, to serve Asian markets, São Paulo, Brazil, to serve the Latin American market, Ormeau, Australia, to serve the Australasian market, as well as North Carolina, United States, to cater for the North American market. Over the years, CDE has had representatives in North Africa, sub-Saharan Africa and the Middle East, to develop its customer base. According to Nicolan Govender, Regional Manager Africa at CDE, the biggest hurdle to developing the wet processing business in Africa was that many existing local operators focused solely on crushing and screening. “While washing basically comes as a result of crushing and screening, it is a specialised and niche market. Wet processing is much more specific than

crushing and screening because it entails getting from millimetre to micron sizes. As a result, a direct approach by CDE experts who specialise in wet processing has proven to be a winning formula. This is why CDE has adopted a global strategy to go direct to the customer rather than via distributors from its inception in 1992, and since 2008 when it established itself in South Africa,” reasons Govender. In 2015, the company made a call to develop a team based in the sub-Saharan African (SSA) region, hence the appointment of Govender as Regional Manager for Africa. Govender works closely with Business Development Manager Wayne Warren, and between the two of them, they bring on board over 30 years of experience in the sand and aggregates industry, which is a key target market for CDE locally. As part of its

CAPITAL EQUIPMENT NEWS MAY 2017 20

A CDE sand washing plant is deployed at Estim Construction’s site in Tanzania.

2020 Vision, one of the immediate objectives of the company is to establish a fully-fledged CDE office with a full staff complement in South Africa, which will act as a springboard into the rest of the SSA region. Why direct? Govender says the decision to go direct to market was informed by the company’s con- sciousness to disintermediation largely due to the lack of proper representation in the washing space. He reasons that servicing cus- tomers directly also strengthens relationships, while building an intimate understanding of customers’ operations over time. Govender is also of the view that as a manufacturer of specialised and sophisticated equipment, CDE believes it can offer its customers better service and solutions because it knows its product better than anyone else. The company can also

region, which, in a market well-known to be depressed at this stage, is quite a success. In terms of installations, the company did nine last year, eight in South Africa and one elsewhere in Africa. The target market in southern Africa remains predominantly sand and aggregates, according to Govender. He is of the view that, in terms of wet processing, the C&D market, which is one of the key markets for CDE in the UK and Europe at large, hasn’t taken off in Africa yet. Of the eight South African installations, seven were in the sand and aggregates sector, and one in mining. The mining installation is a multi-million rand plant which is set to be commissioned in two months’ time. Govender says once the plant has proven itself over time, there are likely to be some interesting spin-off jobs out of this particular project.

leverage case studies and learnings from its installed bases across the continent. Dealing directly with customers also better informs research and development (R&D) by incorporating customer feedback and their changing needs into the company’s research projects. According to Govender, doing business directly with end users also helps the OEM to find quick solutions for its customers, especially in the current economic climate where uptime and productivity are key survival factors for both aggregates producers and mining companies. Success stories Govender maintains that a growing installed base of CDE products is evidence of the success of the direct approach. Last year alone, the company sold just under R35 million worth of equipment in the

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BUSINESS

South African brick and block manufacturer Multi Crete Bricks “just can’t keep up with orders”, according to CEO Christo Niemand. In 2016, Multi Crete saw an opportunity to take the lead in the local materials washing market. To achieve this, an upgrade of its sand screw washing plant was necessary to remedy the substantial loss of valuable fines that ended up in its quarry’s dam. By installing a new CDE EvoWash sand washing plant on its Analiza quarry, Multi Crete can now continue to produce its own bricks, blocks, and manufactured washed sands with an additional plaster sand. The Analiza quarry treats raw materials including crushed rocks, a mixture of granite and silica, some being heavily clay-bound. It now produces 23 t per hour of plaster sand and 19 t per hour of river sand. The EvoWash allows for two products to be produced at the same time and can also be set to alter the amount of finer sand in the end product, allowing the quarry to produce two products (-2 mm + 0 and -6 mm + 0). State of market Speaking of market conditions, Govender says the African market at large, due to its overreliance on either mining or oil, is very tight at this stage. He, however, finds East Africa to be an interesting market due to its independence from the resource reliance. Despite the seemingly tough trading conditions, Govender tells Capital Equipment News that CDE has a steady flow of proposals going out at this stage, and notes that South Africa has started on a fairly positive note this year. He is mostly excited about the recent big sale to one of the biggest five aggregate producers in South Africa, which he believes is a breakthrough considering that the big five pretty much run the bulk of the quarries in the country. Speaking of market size, Govender says though the sand market is a big sector locally, the wet processing component is still fairly small. He notes that the manufactured sand market is generally larger than the aggregates market, and predicts it to be around 60% of the total aggregates market in South Africa. “Of that 60%, there is only about 10-15% of washing. It is a small market, but all in- dications are that, washing has to grow. Our products offer well-shaped, washed and graded manufactured sand, helping to replace natural sand, which is fast becoming scarce and expensive,” says Govender. He further notes that the big emphasis on curbing illegal sand mining in rivers, as well as water restrictions in South Africa, will bode well for CDE wet processing systems locally. b

A CDE AquaCycle delivers up to 90% water recycling with very small equipment footprint.

By installing a new CDE EvoWash sand washing plant on its Analiza quarry, Multi Crete Bricks can now continue to produce its own bricks, blocks and manufactured washed sands with an additional plaster sand.

In the sand and aggregates space, the biggest customer to date is a Johannesburg- based supplier of sand, which has already taken delivery of three plants from CDE. Previously, the company would crush material sold as crusher dust to the concrete and asphalt manufacturers. With CDE plants, the sand supplier can now wash the crusher dust to take off all the ultra-fines – silt and clay – to produce a more valuable product. It becomes a valuable product in the sense that washed sand with reduced silt and clay content lowers the cement and water content in concrete mixes. A block manufacturer in the KwaZulu- Natal area of South Africa is another company that recently took delivery of a CDE plant. The return on investment on this particular plant is based on reduced use of cement in its block-making process. The company now saves 10% on its cement usage every month, which will cover the cost of repayment of the EvoWash to the bank in just seven months. Case studies Meanwhile, CDE recently helped Free State-based Mission Point Mining (MPM),

a mining operation which supplies silica sand to the construction industry, to decrease its water consumption significantly. The company took delivery of a CDE EvoWash 151 and an AquaCycle 400 water recovery system. It is producing up to 130 t per hour of 0-1 mm fine sand sold as plaster and building sand, as well as foundry sand to the local specialist sand market. Since MPM switched to the CDE cyclone and water recycling technology, demand for its products has grown and the company has nowembarked on an expansion of its business, according toMD Johann Pretorius. To run the EvoWash, MPM feeds the plant up to 500 000 ℓ of water per day for a total running time of 11 hours. To ensure optimal efficiency, the company has put in place highly effective water saving systems benefitting both the business and the environment. As well as running a CDE AquaCycle that saves up to 90% of waste water, MPM’s water recovery system for stockpiles is also instrumental in accelerating the drying process of the end product to allow it to be sold quickly and make space for new stockpiles. Elsewhere, following the installation of a CDE EvoWash 72 on its Analiza quarry site,

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